Payment Processing for the 21st

Century

ACHeck21®

Offered by:Sam Ackley

IntroductionIntroduction

�� Founded in 2006; currently funded by original two partners and Founded in 2006; currently funded by original two partners and two outside private investorstwo outside private investors

�� Business is a proven, flexible, scalable and completely Business is a proven, flexible, scalable and completely configurable SaaS solution designed to support the most basic to configurable SaaS solution designed to support the most basic to the most complex check processing environments the most complex check processing environments –– ACH or ACH or Check21 Check21

�� ACHeck21 technology has evolved over the past 11 years and was ACHeck21 technology has evolved over the past 11 years and was acquired by the current owners in 2006. From 2006 until 2008, acquired by the current owners in 2006. From 2006 until 2008, there was little focus on sales and marketing while ACHeck21 was there was little focus on sales and marketing while ACHeck21 was enhanced, reenhanced, re--branded and new features added to create the key branded and new features added to create the key value proposition components included todayvalue proposition components included today

�� Key value propositionKey value proposition -- low cost, easily installed, seamless low cost, easily installed, seamless business solution that allows the exchange of currency between business solution that allows the exchange of currency between any two checking accounts whether presented electronically or in any two checking accounts whether presented electronically or in paper draft form. The solution is accessible by API to any existing paper draft form. The solution is accessible by API to any existing payment capture channels (e.g., phone, web, etc)payment capture channels (e.g., phone, web, etc)

The MarketThe Market

�� Payment industry and Financial Institutions (FIs), have moved Payment industry and Financial Institutions (FIs), have moved towards the “towards the “electronificationelectronification” of paper checks due to Check21 ” of paper checks due to Check21 law law –– Remote Deposit Capture (RDC)Remote Deposit Capture (RDC)

�� Checks and/or ACH transactions represent 48% of nonChecks and/or ACH transactions represent 48% of non--cash cash transactions; a $45B markettransactions; a $45B market

�� The fees and internal costs associated with paper check clearing The fees and internal costs associated with paper check clearing are increasingly pushing bank customers toward ACH and RDCare increasingly pushing bank customers toward ACH and RDC

�� Banks cannot economically provide RDC and ACH business Banks cannot economically provide RDC and ACH business solutions solutions -- the small and medium size businessesthe small and medium size businesses

�� There is a large void in RDC solutions that solve these problemsThere is a large void in RDC solutions that solve these problems

�� There is a large void in ACH based solutions that solve these There is a large void in ACH based solutions that solve these problemsproblems

The Opportunity The Opportunity –– Market SizeMarket Size

The SolutionThe Solution

�� Proven, Superior Software at a fraction of the costsProven, Superior Software at a fraction of the costs

�� Proven Management Team Proven Management Team �� Proven Management Team Proven Management Team

�� Futuristic patentable technology.Futuristic patentable technology.

ACHeck21® Deployment OptionsACHeck21® Deployment Options

Solution Security Solution Security –– ACHeck21ACHeck21

Business ModelBusiness Model

�� Recurring IncomeRecurring Income

�� CheckCheck

�� ReturnReturn

�� Batch Batch

�� VerificationVerification

�� Check guaranteeCheck guarantee

�� Return check collectionReturn check collection

�� Data miningData mining�� Data miningData mining

�� Fixed income Fixed income

�� Monthly minimumMonthly minimum

�� Statement feeStatement fee

�� Set up feeSet up fee

�� Other incomeOther income�� Software developmentSoftware development�� Hourly support feesHourly support fees�� Software licensingSoftware licensing

Sales and Distribution Partner StrategySales and Distribution Partner Strategy

�� Direct Sales:Direct Sales:

�� Specific market focus on FI’s ,utilities, insurance, collectionSpecific market focus on FI’s ,utilities, insurance, collection

�� Website and direct referral leads utilizing SEO strategies and Website and direct referral leads utilizing SEO strategies and outside analystsoutside analysts

�� Pipeline generation aided by internal lead generation Pipeline generation aided by internal lead generation solution, access to Hoovers and industry outside analyst datasolution, access to Hoovers and industry outside analyst data

�� Trade show presence with yearTrade show presence with year--end ROI analysisend ROI analysis

�� For larger scope opportunities, target RFP lists within the For larger scope opportunities, target RFP lists within the utilities and insurance markets utilities and insurance markets

�� Distribution PartnersDistribution Partners

�� API Integrate to key “core processors” API Integrate to key “core processors”

�� Financial Institutions Financial Institutions –– specifically, Community Banks and specifically, Community Banks and Credit UnionsCredit Unions

�� Credit card acquirers and Independent Sales OrganizationsCredit card acquirers and Independent Sales Organizations

�� Equipment manufacturing vendorsEquipment manufacturing vendors

CompetitionCompetition

�� Competition ranges from startCompetition ranges from start--up to “already rolled up to “already rolled up” into larger payment organizationsup” into larger payment organizations

�� Notable larger names include: Profit Stars, Intuit, J&B Notable larger names include: Profit Stars, Intuit, J&B Software, ACH DirectSoftware, ACH Direct

�� ACHeck21’s advantages include: ACHeck21’s advantages include:

�� Easily deployed and high speed Easily deployed and high speed

�� RDC installs in 10 minutesRDC installs in 10 minutes

�� Lower costs basisLower costs basis

�� Supports Check Readers, Scanners and credit card Supports Check Readers, Scanners and credit card terminalsterminals

�� Reads bar code, handwriting and typed charactersReads bar code, handwriting and typed characters

�� Manages returns and reManages returns and re--deposit strategiesdeposit strategies

�� Offers business solutions Offers business solutions –– image archive, A/R updates, image archive, A/R updates, output files, duplicate check detection and more.output files, duplicate check detection and more.

�� Supports issuing credits (Payroll or A/P)Supports issuing credits (Payroll or A/P)

Competition Competition –– Where is market headed? Where is market headed?

�� In the short term:In the short term:

�� Affordable, friendly and fast RDC for Small to medium size Affordable, friendly and fast RDC for Small to medium size business with easy deploymentbusiness with easy deployment

�� More functionality More functionality -- A/R update, returns management A/R update, returns management

�� Comprehensive solutions that can support the plethora of Comprehensive solutions that can support the plethora of bank customers bank customers –– simple to highly complex business simple to highly complex business opportunities opportunities –– all on the same platform.all on the same platform.

�� Ability to deposit to more than one bank accountAbility to deposit to more than one bank account�� Ability to deposit to more than one bank accountAbility to deposit to more than one bank account

�� Business solutions such as data mining and capture of info Business solutions such as data mining and capture of info from EOB’sfrom EOB’s

�� In the longer term:In the longer term:

�� Complete Complete electronificationelectronification of value exchange between of value exchange between checking accounts at point of salechecking accounts at point of sale

�� New technology will be introducedNew technology will be introduced

�� Mobile Mobile –– exchange value P2P or C2Bexchange value P2P or C2B

�� Blue tooth or similar technology to offer a secure Blue tooth or similar technology to offer a secure connection point at point of saleconnection point at point of sale

�� Integration to Integration to iPhoneiPhone application application

Thank you for your time and

consideration of this partnership!